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New Product Development Lecture13

The document discusses key aspects of new product development including: 1) The development stage involves managing the development team and structuring it effectively. Common structures include functional, matrix, and venture models. 2) Designing the new product is an important managerial role, with goals like meeting customer needs and building corporate identity. Product architecture involves defining components and their interactions. 3) Computer aided design and manufacturing (CAD/CAM) helps identify and solve problems early in development, improving designs from simple to complex products.

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Jawad Haider
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37 views

New Product Development Lecture13

The document discusses key aspects of new product development including: 1) The development stage involves managing the development team and structuring it effectively. Common structures include functional, matrix, and venture models. 2) Designing the new product is an important managerial role, with goals like meeting customer needs and building corporate identity. Product architecture involves defining components and their interactions. 3) Computer aided design and manufacturing (CAD/CAM) helps identify and solve problems early in development, improving designs from simple to complex products.

Uploaded by

Jawad Haider
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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New Product

Development

Hammad Ashraf
Crawford, ‘New Products Management’, 2003 1
Development
 Development stage; role of
management.
– Development team management.
– Structuring the development team.
 Design of the new product.
 Managerial role in product
architecture.
 Role of computer aided design/
manufacturing in development stage.
2
New Product Development Process
 Marketingis involved from the
beginning of the process.
– Role of ‘information coordination’:
 Opportunityidentification & selection.
 Concept generation.
 Concept/project evaluation.

 Development.
 Launch.

3
Role of Management in
Development Stage
 Topmanagement’s support in new
product development.
– Strategic decisions, key checkpoints to
watch, managing ongoing operations.
 Establishing a culture of
collaboration.
 The team assignment & ownership.

4
Development Team Management
 One of the crucial decision making
units:
– Baseball teams: like assembly line
teams. Generally work as individuals,
work is normally in series.
– Football teams: players with fixed
positions. Work is parallel. Japanese car
teams.
– Tennis-doubles: partners are dedicated.
Players work with and support each
other. Some call it volley-ball teams.
5
Development Team Management

 Some believe that volleyball teams are


best, more players, skill development
at different levels…..
 NPD teams are different from the other
teams, shortage of experienced
workers.
 Performance appraisal is tough as only
the team’s performance matters.

6
Structuring the Team
 One of the strategies to structure the
difficult task of developing NPD teams:
 Functional.
 Functionalmatrix.
 Balanced matrix.
 Project matrix.
 Venture.

 According to the commitment of staff


to new product project (loyalty to the
project).
 Organizations use these according to
their own requirements and existing
structures.
7
Structuring the Team
 Functional:
– Work done by departments with very
little project focus.
– Normally results in new product
committee.
– Functional groups working together but
not as a team (functional head….project
manager).
– Low risk…focus on present line of
products… on-going concern… ..
(improvements).
8
Structuring the Team
 Functional matrix:
– Specific team with people from various
departments, but the project is still
close to the running business.
– Requires more focus than just product
improvements.
– The departments call the shots.
– Team members think as functional
specialists.

9
Structuring the Team
 Balanced matrix:
– Situations where both functional and
project views are critical.
– Using 50/50 thinking results in delays
and indecision.
– Held in disfavor of the new products.
– Texas Instruments used it and later
discarded it for the same reason.

10
Structuring the Team
 Project matrix:
– Projectization is high.
– Team people are ranked first and then
functional people.
– More decision making powers in the
hand of NPD team.
– Department’s heads complaint that their
staff is driving the project against the
department’s interests.

11
Structuring the Team
 Venture:
– Team members are pulled out of the
departments to work full time on NPD.
– Full autonomy and no influence of
departments on NPD process.
– Venture may well work in same
organization or get a new office.
– Ford sent its new Mustang team to a
converted furniture warehouse.

12
Design of the New Product
 ‘the synthesis of technology and
human needs into manufacturing
products’. (Crawford, 2003)
 One of the most important aspects of
NPD from managerial aspect.
 Designers take rigorous training to
learn how to design products that
function well.
 A tool for boosting competitiveness.
13
Design of the New Product
 Contribution of design to NPD goals:
 Design for speed to market.
 Design for ease of manufacture.
 Design for differentiation.

 Design to meet customer needs.


 Design to build or support corporate
identity.
 Design for the environment.

 Article for discussion:


– “Using Product Designs Strategically to
Create Deeper Consumer Connections”.
14
Product Architecture
 Product consists of components:
– CD player: chassis, motors, disk
drives, speakers, combined in
chunks (sound system).
 Product
also consists of functional
elements:
– CD player: reading disks, producing
sounds, adjusting sound quality….
 Product architecture is how these
functional elements are assigned
to chunks and how the chunks are
interrelated. 15
Product Architecture
 Stepwise process:
– Create the product schematic:
Shows the components and functional
elements of the product and how they
are interconnected.
– Cluster the schematic elements:
Chunks or modules are defined.
Interaction between these chunks is
planned.

16
Product Architecture
– Create Geometric Layout:
Using simulations, product is arranged
in several configurations to find best
solution. ‘Should the disk load in the
front or back’?
– Check Interaction between Chunks:
understanding of what happens at the
interfaces between chunks. ‘Sound flows
as a digital signal to disk during
recording’!
17
Computer Aided Design/
Manufacturing (CAD/CAM)
 Identifying and solving design and
manufacturing problems in earlier
stages of the NPD process.
 Design of simple products to
Boeing’s 777.
 Virtual crashing by BMW led to 30%
improvement in design.
 Digital preassembly by Chrysler.

18
The End.

19

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